Hewlett Packard Enterprise Company (HPE) announced financial results for its fiscal third quarter ended July 31, 2026, reporting record revenue and profitability. The company reported total revenue of $12.2 billion, representing a 34% increase compared to the prior-year period.
Key financial metrics for the quarter included:
- Gross Margins: GAAP gross margin was 40.1%, up 1,090 basis points year-over-year, while non-GAAP gross margin was 40.4%.
- Operating Profit: GAAP operating profit margin was 11.4%, up 870 basis points year-over-year, and non-GAAP operating profit margin was 16.2%.
- Earnings Per Share: GAAP diluted net earnings per share were $1.06, and non-GAAP diluted net earnings per share were $1.11.
- Free Cash Flow: Free cash flow totaled $1.0 billion, an increase of $0.2 billion from the prior year.
Segment performance was driven by strong demand across the portfolio. Networking revenue reached $2.9 billion, up 74.9% year-over-year, with specific growth seen in Campus & Branch, Data Center Networking, Security, and Routing. Cloud & AI revenue was $9.0 billion, up 25.4% year-over-year, led by a 35.3% increase in Server revenue.
HPE also announced a quarterly dividend of $0.1425 per share, payable on or about October 16, 2026, to stockholders of record as of September 17, 2026.
In its updated outlook, HPE raised its fiscal 2026 revenue growth guidance to 34% to 37%. The company expects GAAP diluted net earnings per share to range from $2.93 to $3.03 and non-GAAP diluted net earnings per share to range from $3.75 to $3.85. Additionally, HPE raised its free cash flow guidance for fiscal 2026 to at least $3.75 billion.
Looking ahead to fiscal 2027, HPE raised its revenue growth outlook to 13% to 17% and expects non-GAAP diluted net earnings per share growth to be in the range of 16% to 20%. The company also increased its fiscal 2027 free cash flow guidance to at least $5.0 billion.
